ICICI Direct has given Buy recommendation for Vinati Organics with a target price of Rs. 2320 in its research report issued on Jun 28, 2022

ICICI Direct’s research report on Vinati Organics

Vinati Organics is a leading manufacturer of specialty chemical and organic intermediaries with global market leadership in its two key products- 2- Acrylamido 2 Methylpropane Sulphonic acid (ATBS) and Isobutyl Benzene (IBB). Starting with IBB and subsequent forays into IB, ATBS, Butyl phenols, the company is now moving towards antioxidants. • The company has two manufacturing facilities at Mahad and Lote • In terms of revenue contribution, ATBS constitutes ~40-50% of overall revenue followed by IBB of 20-30% while the rest is from other segments such as IB, Butyl phenols and derivatives.

Outlook

We retain BUY rating on the back of better growth outlook from ATBS and newer products such as Butyl phenols and antioxidant. We value Vinati Organics at 45x P/E FY24E EPS to arrive at a revised target price of Rs 2320/share (earlier Rs 2320/share).

More Info

At 16:01 hrs Vinati Organics was quoting at Rs 1,952.55, up Rs 84.95, or 4.55 percent.

It has touched an intraday high of Rs 1,965.00 and an intraday low of Rs 1,836.80.

It was trading with volumes of 4,413 shares, compared to its thirty day average of shares, a decrease of percent.

In the previous trading session, the share closed down 0.61 percent or Rs 11.55 at Rs 1,867.60.

The share touched its 52-week high Rs 2,289.55 and 52-week low Rs 1,675.00 on 25 April, 2022 and 24 February, 2022, respectively.

Currently, it is trading 14.72 percent below its 52-week high and 16.57 percent above its 52-week low.

Market capitalisation stands at Rs 20,068.71 crore.

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